1. Field of the Invention
This invention relates generally to systems for conducting commercial transactions over a computerized network, and more particularly, to a system wherein buyers pay to bid on products being auctioned, the cost-of-bidding being responsive to the time rate of accumulation of bids.
2. Description of the Related Art
Conventional auction arrangements are generally directed toward increasing the price at which the auctioned goods are sold by causing the buyers to bid against each other. There is a need, however, for a system of conducting sales of products and services whereby buyers are given incentive to bid early during an auction by increasing the cost-of-bid price as a function of the time rate at which bids are accumulated.
There is additionally a need to establish a reserve price that is determined in relation to actual manufacturers' suggested retail price (“MSRP”) or actual prices at which such products or services are available from other vendors (“Street Prices”), and actual price trends and price break points.
There is yet another need for an electronic auction system wherein bidders are motivated to place bids early during the auction cycle.